View Single Post
  #69  
Old 11-15-2007, 11:20 PM
Money2Burn Money2Burn is offline
Senior Member
 
Join Date: Jan 2006
Location: Florida, imo
Posts: 943
Default Re: 286 billion Farm Aid Bill for 2008

[ QUOTE ]
[ QUOTE ]
They grow "extra" because they believe someone somewhere else will buy it. It doesn't have to be the US. You think Japan produces all their food domestically?

[/ QUOTE ]

well here's the thing. if there's anticipated demand, and they produce that much, then there's no extra.

your position is that the farmers and market forces will produce to demand, ok fine, but then when something unanticipated happens, there will be less supply than was planned for.

I mean, if there is extra then it won't be sold or it will depress prices, so the market should correct for that.

in other words, the market wants supply = demand, or even a little less supply to keep price up a little, which is fine, but implicit in that is that there will be price spikes and stuff and because the market forces will not have overproduction.

I mean it's like saying , who created god, god1, who created god1, god2 , ...

[/ QUOTE ]

Yes and demand is already much much higher than the bare minimum of what people need to survive, so if some natural disaster happens and supply is severely cut, people will still be ok. You are going off the premise that as it is farmers only supply exactly what people need to live. The actual demand is much higher than that.

Also, the chances of there being some event that would cause the type of shortages you are talking about are very very slim, farmers are very good in this country and don't usually have trouble producing enough food so people can live. Also, why should we waste money year in and year out subsiding farmers for an event that is extremely unlikely to happen?
Reply With Quote